Glencore gets approval for takeover of Biopetrol

HAMBURG (Reuters) - Competition authorities have approved the purchase of a majority stake in Swiss-German biodiesel producer Biopetrol Industries AG by Swiss commodities giant Glencore, Biopetrol said on Tuesday.

Biopetrol had also made the long-awaited start of production at its huge new biodiesel plant in Rotterdam, the company said in a statement.

On December 30, Biopetrol said Glencore had acquired 50 percent of the company plus one share and had the option to increase its holding to a two-thirds majority.

Biopetrol agreed on a financial restructuring programme in 2009 which allowed it to continue operations after announcing it could not pay bond coupon interest and was seeking restructuring as an alternative to an insolvency.

"In order to secure the competitiveness of Biopetrol for the long term in an extremely difficult and political market for biofuels, and at the same time strengthen its market position in Europe, it was necessary to create economies of scale and to extend the value chain," Biopetrol said.

"For both goals, the new majority shareholder Glencore is the ideal partner with its global commodity trading activities."

ROTTERDAM OUTPUT STARTS

Biopetrol has production capacity of about 350,000 tonnes of biodiesel at two sites in Germany and has completed a 400,000 tonnes biodiesel plant in Rotterdam in the Netherlands.

The Glencore sale would enable biodiesel capacity to be put into use in the medium term, Biopetrol said.

"On 25 January the first of two biodiesel plants successfully commenced operations in Rotterdam," Biopetrol said in the statement.

The Rotterdam plant was due to start operations in early 2009 but has faced delays.

The first of two 200,000 tonne annual capacity biodiesel production lines has now started operation at Rotterdam, a Biopetrol spokesman added.

He could not give expected 2010 output and said the second 200,000 tonne unit in Rotterdam would be put into production would depend on "market demand."

Biopetrol has struggled with a collapse in biodiesel demand partly due to higher taxes on the green fuel in Germany and reduced political support for biofuels in other countries.

(Reporting by Michael Hogan; Editing by Amanda Cooper)